FAQ on Exemptions, Deductions, and Tax Credits for Foreigners' Individual Income Tax – Part 1
Q: What items can be deducted from the total income when calculating the individual income tax for foreigners who are residents of the Republic of China (Taiwan)? A: Foreigners who are deemed residents of the Republic of China may deduct the following items from their total comprehensive income: exemption amount, deduction amount, and the difference in basic living expenses.Exemption Amount: In the 2024 tax year, the exemption amount for the taxpayer, spouse, and each dependent is NT$97,000 per person. For taxpayers, spouses, and supported lineal ascendants who are aged 70 or above, the exemption amount is NT$145,500 per person.Deductions: There are two categories of deductions: Category 1 &ndash General Deductions: These are divided into Standard Deduction and Itemized Deduction. Only one method can be used for filing they cannot be combined.Standard Deduction: (Fixed amount based on marital status)NT$131,000 for single filersNT$262,000 for married couples filing jointlyItemized Deductions include:A.Charitable Donations B. Insurance Premiums C. Medical and Childbirth Expenses D. Losses from Natural Disasters E. Mortgage Interest on Self-Use Residential PropertyCategory 2 &ndash Special Deductions: (7 types total)A. Capital Loss Deduction: Limited to capital gains in the same year B. Special Deduction for Savings and Investment: Maximum NT$270,000 per household C. Special Deduction for Disabled Individuals: NT$218,000 per person D. Special Deduction for Tuition: Maximum NT$25,000 per dependent E. Special Deduction for Preschool Children F. Special Deduction for Long-Term Care: NT$120,000 per person annually (applicable from 2019 onwards) G. Special Deduction for House Rent PaymentsBasic Living Expense Difference: According to the 2024 announcement, the basic living expense per person is NT$210,000. Multiply this amount by the number of people in the household (including the taxpayer, spouse, and dependents) to calculate the total necessary living expenses. If this total exceeds the sum of the exemptions, deductions (either standard or itemized), special deductions (including for savings, disability, tuition, preschool children, long-term care, and rent), the difference may be deducted from the taxpayer&rsquos total income.Q: Can a foreigner who is not a resident of the Republic of China deduct exemptions, deductions, or the basic living expense difference? A: No. Foreigners who are not residents of the Republic of China are not entitled to any exemptions, deductions, or basic living expense differences. Q: What documents must be submitted when reporting a spouse or dependents? A: Foreign taxpayers must provide the following supporting documents:★ Spouse:Basic information (e.g., passport copy, birth certificate, or ARC)Proof of relationship (e.g., marriage certificate or document certified by a local authority or ROC embassy/mission)Proof of survival (e.g., notarized document or household certificate)★ Lineal ascendants (must be aged 60 or above, or below 60 without earning ability):Basic information (e.g., passport copy, ARC, or household certificate)Proof of relationship (e.g., birth certificate or household certificate showing names)Proof of financial support (e.g., remittance records or notarized documents)Proof of survivalIf under 60 and without earning ability, proof such as a medical certificate or official certification from the local authority is required★ Children or siblings (must be minors, or adults still in school, disabled, or without earning ability):Basic information (passport, ARC, or household certificate)Proof of relationship (birth certificate or household certificate)Proof of financial supportProof of survivalIf an adult and still in school: student ID, enrollment certificate, tuition receipt, or diploma copyIf disabled: disability certificateIf without earning ability: hospital or local government certification★ Other relatives (as defined in Civil Code Articles 1114(4) and 1123(3), must live with and be supported by the taxpayer in Taiwan):Basic information (passport, ARC, or household certificate)Proof of relationshipProof of financial supportIf minor: additional documentation for ROC-national parents (e.g., ID copies)If an adult and still in school: same as aboveIf without earning ability: medical or government certificationProof of cohabitation (notarized document or household certificate). If not listed under the same household, provide local authority certification and a declaration of support from the dependent or guardianForeigners residing in Taiwan may still claim exemption amounts for spouses or dependents who are not in Taiwan (excluding other relatives such as uncles, nephews, grandchildren, etc.), if the required documents are properly provided and verified.There are seven types of special deductions. (Image / Source: Ministry of Finance Facebook)Q: Can foreigners claim exemptions for spouses or dependents who are not living in Taiwan? A: Yes, foreigners residing in Taiwan may claim exemption amounts for spouses or dependents not living in Taiwan (excluding other relatives like uncles, nephews, grandchildren, etc.), provided that all required supporting documents mentioned above are submitted and meet the requirements.
